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A new report commissioned by EECA (Energy Efficiency and Conservation Authority) shows a wide range of rates of return for large businesses considering investing in commercial-scale solar. EECA says 11 different types of businesses in eight regions throughout the country were analysed using a model to predict solar generation and financial performance.
Strategy and Insights Manager Dr Marcos Pelenur says businesses included food and beverage production, manufacturing, education, waste-water treatment and supply, a dairy farm, three types of retail outlets, a greenhouse, a cool store, a corporate office, and two types of warehousing.
“The analysis shows a wide range of potential internal rates of return, ranging from 0.4% to 8.6%.
On the basis of these findings there can be good investment benefits, but they are clearly variable so EECA recommends businesses carry out an in-depth analysis before investing in commercial-scale solar, to determine the potential financial performance for their company.”
Dr Pelenur says businesses can use the framework used in the analysis, which includes: whether the business has a very large, unshaded roof space
how much electricity the business uses and when it is used
how much the business pays for electricity
lines company charges – these vary across the country
how much will the system cost to install and maintain.
EECA commissioned the analysis because there has been limited publicly available information on the cost-effectiveness of commercial-scale solar for businesses.
The analysis is available free of charge on the EECA website
www.eeca.govt.nz/insights/eeca-insights/commercial-scale-solar-in-new-zealand
Example business
Food and beverage production siteAuckland
Amount of generated solar that would be used100%
Internal Rate of Return on Investment7.2%
Wholesale food marketChristchurch
Amount of generated solar that would be used96%
Internal Rate of Return on Investment6.8%
Corporate officeAuckland
Amount of generated solar that would be used99%
Internal Rate of Return on Investment7.6%
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